House backs broad healthcare overhaul directing reference‑based pricing, hospital budget review and statewide plan

The Vermont House on May 20 approved Senate Bill 126, a comprehensive healthcare payment and delivery reform bill that directs the Green Mountain Care Board to implement reference‑based pricing, expands budget review of hospitals and hospital networks, and requires the Agency of Human Services (AHS) to lead a statewide health care delivery strategic plan due Jan. 15, 2027.

The legislation tasks the Green Mountain Care Board with setting reference‑based prices — maximum payments for services delivered in Vermont based on a percentage of Medicare or another benchmark — and authorizes the Department of Financial Regulation to monitor implementation to ensure lower hospital payments produce lower insurance premiums. The bill also directs the board to standardize hospital budget submissions, review network financial operations, and consider executive and clinical leadership compensation in budget reviews.

Why it matters: Sponsors said the bill seeks to curb rapidly rising premiums, shore up struggling hospitals and create a statewide framework for allocating health‑care resources. The measure creates new committees — including a 19‑member health care delivery advisory committee and a 16‑member comprehensive primary care steering committee — to guide strategy and monitoring.

Key provisions and timelines - Reference‑based…